“An investigation into investment schemes has harmed [the self-storage sector], but more mature investors aren’t spooked” – Andrew Stone, Property Week.
Property Week’s self-storage supplement looks into the image problem the sector has as The Serious Fraud Office (SFO) investigates aggressively sold self-storage investment schemes.
Rapleys’ Colin Steele, partner in the Industrial and Logistics team, comments in the article:
“Larger companies and more sophisticated financial investors are seeing past [the bad reputation]. They operate on a different set of models and calculations and they are looking at excellent returns.
In the long term, this will be a storm in a teacup. The longer-term strength of the industry is there for all to see. Self-storage sites can get up to 80% to 90% occupancy, offer strong visible cash flows and good yields and are recession resilient.
The main challenge facing the industry now is finding suitable sites.”
Read the full Property Week article online here.